India’s Central Bank Targets One Million Digital Rupee Users in June

In a press conference, the Deputy Governor of the Reserve Bank of India (RBI), T Rabi Shankar shared the RBI’s ambitious target of reaching one million users for its central bank-backed digital currency (CBDC) by the end of June. The RBI has been conducting a pilot project for the CBDC, which initially focused on the wholesale segment and later expanded to include retail customers and merchants.

The pilot project, launched in major cities like Mumbai, New Delhi, Bengaluru, and Bhubaneswar, has gradually been extended to other cities across India. Initially involving banks such as State Bank of India, ICICI Bank, YES Bank, and IDFC First Bank, it later welcomed participation from Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank.

The RBI plans to make CBDC QR codes interoperable with the Unified Payment Interface (UPI) to promote further adoption of the digital currency. UPI has gained popularity in India, facilitating seamless digital transactions through various channels such as debit and credit cards, internet banking, and mobile wallets. This move aims to leverage the familiarity and convenience of UPI’s QR code scans to promote CBDC usage among merchants and individuals.

While the RBI hasn’t specified a definitive go-live date for the CBDC beyond the ongoing pilot, Deputy Governor Shankar emphasized the importance of a gradual and calibrated approach. The central bank wants to ensure it learns from the pilot phase and smoothly transitions to the digital currency.

As the RBI strives to revolutionize India’s financial landscape, the digital rupee’s adoption promises a significant shift toward a more inclusive and technologically advanced economy.